Does the Focalpoint Coaching franchise agreement include a waiver of punitive damages and jury trial?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
H. WAIVER OF PUNITIVE DAMAGES AND JURY TRIAL.
EXCEPT FOR FRANCHISEE'S OBLIGATION TO INDEMNIFY FRANCHISOR FOR THIRD PARTY CLAIMS UNDER SUBSECTION 16.D, AND EXCEPT FOR PUNITIVE DAMAGES AVAILABLE TO EITHER PARTY UNDER FEDERAL LAW, FRANCHISOR AND FRANCHISEE (AND FRANCHISEE'S OWNERS) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM FOR ANY PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES AGAINST THE OTHER AND AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN FRANCHISOR AND FRANCHISEE, THE PARTY MAKING A CLAIM WILL BE LIMITED TO EQUITABLE RELIEF AND TO RECOVERY OF ANY ACTUAL DAMAGES IT SUSTAINS.
FRANCHISOR AND FRANCHISEE IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER FRANCHISOR OR FRANCHISEE.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the franchise agreement includes a waiver of punitive damages and jury trial. Specifically, both Focalpoint Coaching and the franchisee waive, to the fullest extent permitted by law, any right to or claim for any punitive, exemplary, or consequential damages against the other. This waiver does not extend to the franchisee's obligation to indemnify Focalpoint Coaching for third-party claims or to punitive damages available to either party under federal law. In any dispute, the claiming party is limited to equitable relief and recovery of actual damages.
Furthermore, Focalpoint Coaching and the franchisee irrevocably waive trial by jury in any action, proceeding, or counterclaim, whether at law or in equity, brought by either party. This means that any disputes arising between Focalpoint Coaching and a franchisee will be resolved by a judge rather than a jury.
However, the FDD also notes that if required by Minnesota Franchises Law, Section 17.H of the Franchise Agreement is deleted. This indicates that the waiver of punitive damages and jury trial may not be enforceable in Minnesota, depending on the specifics of Minnesota law. Similarly, for franchisees in Illinois, the waiver of jury trial does not apply to the extent prohibited by Section 705/41 of the Illinois Franchise Disclosure Act of 1987 or Illinois Regulations at Section 260.609.
Prospective franchisees should be aware of these waivers and their potential impact on their legal rights. It is advisable to consult with an attorney to fully understand the implications of these waivers and how they may be affected by state-specific franchise laws.